Zurich Fidelity Guarantee Insurance Policy Wording
Page of 12 Contents Fidelity Guarantee Insurance Policy Wording About Zurich............................................................................................................................ 3 How to apply for this insurance..................................................................................................... 3 Our contract with you................................................................................................................. 3 Duty of Disclosure..................................................................................................................... 3 Non-disclosure or Misrepresentation............................................................................................... 4 Headings................................................................................................................................ 4 Definitions.............................................................................................................................. 4 Dishonest act....................................................................................................................... 4 Employee............................................................................................................................ 4 Excess............................................................................................................................... 4 Insured.............................................................................................................................. 4 Limit of liability...................................................................................................................... 4 Period of insurance................................................................................................................. 4 Property............................................................................................................................. 4 Schedule............................................................................................................................ 4 Subsidiary company................................................................................................................ 4 Time limitations..................................................................................................................... 5 Our Agreement........................................................................................................................ 5 Insuring Clause......................................................................................................................... 5 Limitations of Cover................................................................................................................... 5 Excess............................................................................................................................... 5 Limit of liability...................................................................................................................... 5 Non-accumulation of liability....................................................................................................... 5 Territorial and Jurisdictional limits.................................................................................................. 5 Valuation and Foreign currency.................................................................................................... 5 Extensions of Cover................................................................................................................... 6 Additional insureds Liability for prior losses...................................................................................... 6 Claims preparation costs........................................................................................................... 6 Continuity of cover................................................................................................................. 6 Merger, takeover, sale, winding-up of insured.................................................................................... 7 Reinstatement of the limit of liability.............................................................................................. 7 Unidentifiable employees........................................................................................................... 7 Exclusions............................................................................................................................... 7 Computer virus..................................................................................................................... 7 Cost of reproducing information................................................................................................... 7 Damages............................................................................................................................ 7 Fraudulent claims................................................................................................................... 7 Inventory / Profit and loss.......................................................................................................... 7 Knowledge of prior theft........................................................................................................... 7 Legal proceedings.................................................................................................................. 7 Loss of potential income........................................................................................................... 8 Loss of trade secrets................................................................................................................ 8 Non-payment / Default of loan..................................................................................................... 8 Other insurance..................................................................................................................... 8 Professional liability................................................................................................................. 8 Subsequent losses.................................................................................................................. 8 Trading losses....................................................................................................................... 8 ZU08281 - PCUS-000155-2007
Claims Conditions...................................................................................................................... 8 Reporting........................................................................................................................... 8 Subrogation......................................................................................................................... 8 Standard Conditions................................................................................................................... 9 Cancellation......................................................................................................................... 9 Misrepresentation, Misdescription, Non-disclosure................................................................................ 9 Change of risk...................................................................................................................... 9 Singular and plural.................................................................................................................. 9 Notice............................................................................................................................... 9 Proper law and jurisdiction......................................................................................................... 9 Payments in respect to Goods and Services Tax................................................................................... 9 Waiver of privilege.................................................................................................................. 9 Page 2 of 12
Zurich Fidelity Guarantee Insurance About Zurich Zurich New Zealand is proud to present the Zurich Fidelity Guarantee Insurance product. The insurer of this product is Zurich Australian Insurance Limited (ZAIL incorporated in Australia) trading as Zurich New Zealand. In this policy wording, Zurich New Zealand may also be expressed as Zurich, we, us or our. ZAIL is a member of the Swiss-based Zurich Group, offering an extensive range of general insurance, investment, life insurance and superannuation products and services for individuals, small to medium sized businesses, larger companies and multi-national corporations. We sometimes capitalise or italicise terms in this document, to show that words are abbreviations or have a particular defined meaning. You should refer to the Definition section of this document on page 4 to obtain the full meaning of such terms. How to apply for this insurance Zurich generally distributes its products through insurance brokers or advisers. Insurance brokers or advisers are qualified professionals who are able to access a wide selection of insurance products from which they are able to recommend those best suited to your insurance requirements, after taking into account your individual circumstances. Throughout this document when we are referring to your insurance broker or adviser, we may simply refer to them as your intermediary. If you are interested in buying this product, you should contact your intermediary. Your intermediary can help you tailor your insurance policy to best suit you. If you then decide to apply for insurance and we accept your proposal, we will issue you with a policy schedule of insurance, which is a document that sets out the details of your particular insurance policy with us. If you have any inquiries about this product, you should speak to your intermediary who should be able to provide you with all the information and assistance you require. If you are not satisfied with the information provided by your intermediary you can contact us at the address or telephone number shown on the back cover of this policy. However, we are only able to provide factual information or general advice about the product. We do not give any advice on whether the product is appropriate for your personal objectives, needs or financial situation. Our contract with you Your policy is a contract of insurance between you and Zurich and contains all the details of the cover that we provide. Your policy is made up of: the policy wording. This is common to all customers who buy our Zurich Fidelity Guarantee Insurance product. It tells you what is covered, sets out the claims procedure, exclusions and other terms and conditions of cover; the proposal, which is the information you provide to us when applying for insurance cover; your most current policy schedule issued by us. The policy schedule is a separate document unique to you, which shows the insurance details relevant to you. It includes any changes, exclusions, terms and conditions made to suit your individual circumstances and may amend the policy; and any other written change otherwise advised by us in writing (such as an endorsement). These written changes vary or modify the above documents. Please note, only those covers shown in your policy schedule are insured. This policy wording is used for any offer of renewal we may make, unless we tell you otherwise. Please keep your policy in a safe place. We reserve the right to change the terms of this policy wording where permitted to do so by law. Duty of Disclosure Before you enter into a contract of general insurance with us, you have a duty at common law to disclose to us every matter you know, or could reasonably be expected to know, that a prudent insurer would want to take into account in deciding whether to insure you and, if so, on what terms. This applies to all persons to be covered under this contract of insurance. You have the same duty to disclose those matters to us before you renew, extend, vary or reinstate a contract of general insurance. Your duty however, does not require disclosure of a matter: that diminishes the risk to be insured; that is of common knowledge; that we know or in the ordinary course of our business we ought to know; that we state to you that we do not want to know. Page of 12
Non-disclosure or Misrepresentation If you make a material misrepresentation to us, or if you do not comply with your duty of disclosure we may treat your policy as if it never existed. Headings Headings have been included for ease of reference, but do not form part of the policy. Where any words are given special meaning in this policy, those words will, unless the context otherwise requires, have that same meaning wherever they may appear in the policy. Definitions When used in this policy, its schedule and its endorsements the following definitions shall apply: Dishonest act dishonest act means the unlawful taking of property with the intent to cause loss to the insured or financial gain to the employee. Employee employee means: (a) a person under contract of service to the insured whom the insured remunerates by salary, wages or commissions and whom the insured has the right to control and direct in the performance of their duties; (b) any director or trustee of any insured while performing acts falling within the scope of the usual duties of an employee; (c) any ex-employee for a period not exceeding 30 days after termination/resignation of employment with the insured, arising out of the duties of that employee during his/her employment with the insured; (d) any temporary personnel assigned to perform employee duties for any insured within the insured s premises by any agency furnishing temporary personnel on a contingent or part-time basis, provided however, that this policy does not cover any loss caused by such individual if such loss is also covered by any insurance held by the agency furnishing such temporary personnel; (e) any work experience student. The definition of employee does not include a broker, commission agent, consignee, contractor or other agent or similar representative. Excess excess means the amount the insured first bears in relation to each loss. The excess applies to all amounts payable under this policy. Insured insured means: (a) you, your or the Insured named in the schedule; (b) subsidiary companies incorporated in New Zealand; (c) any welfare, social or sporting club formed with the insured s knowledge and consent exclusively for the benefit of employees and their families. Limit of liability limit of liability means the total aggregate liability we will reimburse the insured and shall not exceed the Limit of Liability stated in the schedule. Period of insurance period of insurance means the Period of Insurance stated in the schedule. Property property means currency, coin, bank notes, bullion, negotiable and non-negotiable instruments, goods or other items either belonging to, or in the care, physical custody or control of the insured and for which the insured is legally liable other than property excluded by this policy. Schedule schedule means the Schedule attaching to and forming part of the policy wording, including any renewal schedule. Subsidiary company subsidiary company means a company or legal entity in respect of which the first named insured named in the schedule directly or indirectly: (a) control or controlled the composition of the board of directors; and/or (b) control or controlled more than half of the voting power; and/or (c) hold or held more than half of the issued share capital or other ownership of the entity, and shall in any event include any company or legal entity whose financial accounts are required to be consolidated with those of the first named insured pursuant to the Company Law or the applicable New Zealand accounting standards. Page 4 of 12
Time limitations time limitations means the period of insurance and the earlier of either 12 months after the expiration of the period of insurance or the period up to the date upon which the employee committing a dishonest act is terminated. Our Agreement Subject to the prior payment of or the insured s agreement to pay the premium set out in the schedule, we agree with the insured to provide insurance as set out in this policy. In issuing this policy, we rely on the information contained in the proposal form and or any other information given by or on behalf of the insured which shall be the basis of the contract. Insuring Clause Subject to the limit of liability stated in the schedule and the terms and conditions of this policy, we will reimburse the insured for loss of property which: (a) directly results from a dishonest act of an employee committed alone or in collusion with others; and (b) is discovered during the time limitations. Limitations of Cover 1. Excess (a) Our liability under this policy shall apply only to that part of loss which exceeds the excess and such excess shall be borne by the insured uninsured and at the insured s own risk. (b) Should any loss be discovered which is partly recoverable under this policy and partly recoverable under a prior policy containing an excess amount, the excess amount specified in the schedule shall be reduced by the excess amount applied to such loss by the prior policy. 2. Limit of liability (a) We shall not be liable for more than the limit of liability stated in the schedule for any loss: (i) arising directly or indirectly from any one employee or any number of employees acting in collusion, or in respect of which the employee is implicated regardless of whether the dishonest act was committed or the loss occurred during more than one period of insurance; and (ii) in respect of one dishonest act or series of dishonest acts arising from the one source or original cause, regardless of whether the dishonest act was committed or the loss occurred during more than one period of insurance. (b) Where more than one dishonest act is committed and/or loss occurs during more than one period of insurance, the dishonest act is deemed to have been committed on the date of the first dishonest act or alternatively the loss is deemed to have occurred on the date upon which the first loss occurred. 3. Non-accumulation of liability (a) Regardless of the number of years coverage shall continue in force and the number of premiums which shall be payable or paid or any other circumstances whatsoever, our liability with respect to any loss or losses shall not be cumulative from one period of insurance to another period of insurance. Where there is more than one insured, our aggregate limit of liability for loss or losses sustained by any or all of them shall not exceed the amount for which we would be liable if all losses were sustained by any one of them. (b) Our total aggregate limit for losses under this policy or any other fidelity guarantee policy issued by the Zurich Group of insurance companies in respect of the same period of insurance shall not exceed the aggregate limit of liability set out in the schedule of this policy. 4. Territorial and Jurisdictional limits This policy shall apply to dishonest acts committed within the Territorial and Jurisdictional Limits specified in the schedule. 5. Valuation and Foreign currency We shall not be liable under this policy for more than; (a) the actual market value of lost, damaged or destroyed securities at the close of business on the business day immediately preceding the day on which the loss is discovered, or for more than the actual cost of replacing the securities, whichever is less; (b) the cost of blank books, pages, tapes or other blank materials to replace lost or damaged books of account or other records; (c) the New Zealand dollar value of a foreign currency based on the rate of exchange published in the National Business Review on the day any loss involving foreign currency is discovered. Page 5 of 12
Extensions of Cover 1. Additional insureds Liability for prior losses If during the period of insurance an additional insured is added to the policy or new subsidiary company formed or acquired, coverage is provided for: (a) any losses sustained after the effective date of such addition; and (b) any losses sustained prior to the effective date of such addition or acquisition, Provided that: (i) the additional insured carried a policy providing comparable cover prior to the inclusion under this policy and there is continuity of cover from the date the loss was sustained to the effective date of the inclusion; and (ii) the loss is discovered within the time limitations provided by this policy if it would have been covered under the prior policy, except for the fact that it was discovered after the time limitations under that policy had expired; and (iii) the amount payable shall form part of and will not be in addition to the limit of liability; and (iv) the loss would have been covered under this policy if this policy with its terms, conditions and exclusions as at the date of substitution had been in force when the dishonest act causing the loss was committed; and (v) the loss has not been notified to any other insurer. The amount payable under this extension will not exceed the lesser of: (1) the amount which would have been payable under the prior policy if the prior policy had continued in force or had applied at the date of discovery of the loss; or (2) the limit of liability at the date of substitution. 2. Claims preparation costs We agree to reimburse the insured for an amount no greater than the amount of loss payable under this policy, for the reasonable costs incurred in substantiating a loss. Provided that the amount payable under this extension shall be part of and not in addition to the limit of liability specified in the schedule. This extension shall not apply in respect of any loss which does not exceed the excess. 3. Continuity of cover If this policy has been substituted for any prior policy providing comparable cover held by the insured with any other insurer and there is unbroken continuity of cover apart from the substitution, this insurance applies to any loss discovered within the time limitations provided by this policy if it would have been covered under the prior policy except for the fact that it was discovered after the time limitations under that policy had expired. Provided that: (a) the amount payable shall form part of and will not be in addition to the limit of liability; and (b) the loss would have been covered under this policy if this policy with its terms, conditions and exclusions as at the date of substitution had been in force when the dishonest act causing the loss was committed; and (c) the amount payable will not exceed the lesser of: (i) the amount which would have been payable under the prior policy if the prior policy had continued in force or had applied at the date of discovery of the loss; or (ii) the limit of liability at the date of substitution; and (d) the loss arises from a dishonest act committed after the Retroactive Date in the schedule, and (e) the loss has not been notified to any other insurer. Page 6 of 12
4. Merger, takeover, sale, winding-up of insured If, during the period of insurance, the insured is subject to a merger, takeover, sale or winding-up, or the responsibilities of any insured are fully assumed by any other person and/or entity, then coverage shall continue through to the expiry of this policy, and apply only to loss sustained prior to the effective date of the merger, takeover, sale or winding-up or assumption of responsibilities. 5. Reinstatement of the limit of liability In the event of the insured successfully making a claim under this policy, the limit of liability shall be reinstated for the amount required to restore the limit of liability to the amount stated in the schedule. Provided that: (a) the aggregate of amounts so reinstated shall not exceed an amount equal to the limit of liability; (b) our liability in respect of more than one loss arising from the same source or cause shall not exceed the limit of liability. 6. Unidentifiable employees If a loss is alleged to have been caused by the fraud or dishonesty of any one or more of the employees and the insured shall be unable to designate the specific employee causing the loss, the insured s claim in respect of such loss shall not be invalidated by their inability to do so, provided the insured is able to furnish evidence to prove to us that the loss was in fact due to the fraud or dishonesty of one or more of its employees. Exclusions We will not pay anything in respect of any: 1. Computer virus loss or part of a loss arising out of any computer virus or loss caused by a mechanical failure and/or programming errors. 2. Cost of reproducing information loss involving the cost of reproducing any information contained in any lost or damaged manuscripts, records, accounts, microfilms, tapes or other records. 3. Damages loss which wholly or in part consists of exemplary, aggravated or punitive damages. 4. Fraudulent claims fraudulent claim or claims made by or involving any fraudulent means or devices used by the insured or any person acting on the insured s behalf to obtain any benefit under this policy or any loss giving rise to a claim under this policy caused by or with the collaboration of any insured. 5. Inventory / Profit and loss loss or part of a loss where proof of its existence or amount depends on any comparison of inventory records with a physical count or a profit and loss computation. Exclusion 5. does not apply to the extent that the insured can prove the existence or amount of the loss through evidence wholly independent of the comparison or computation. 6. Knowledge of prior theft loss caused by an employee if an elected or appointed officer of the insured possessed at any time knowledge of any act or acts of theft, fraud or dishonesty committed by such employee during the term of the employment of such employee, or prior to employment by the insured, provided that such conduct involved property valued at $25,000 or more. 7. Legal proceedings costs incurred by the insured in connection with any legal proceeding. Page 7 of 12
8. Loss of potential income (a) loss of potential income not in fact earned; or (b) other consequential or indirect loss. 9. Loss of trade secrets loss of trade secrets, confidential processing methods or other confidential information of any kind. 10. Non-payment / Default of loan loss arising from the complete or partial non-payment of or default on any loan, extension of credit, discounted or acquired accounts or invoices or other transactions of similar character. 11. Other insurance liability for which the insured is entitled to claim under any other policy. 12. Professional liability loss arising out of a breach of duty owed in a professional capacity by the insured. 13. Subsequent losses loss arising from any dishonest act committed by an employee after the insured has discovered any other dishonest acts by the employee. 14. Trading losses loss resulting directly or indirectly from trading in securities or derivatives whether or not in the name of the insured and whether or not in a genuine or fictitious account. Claims Conditions Compliance with the following conditions is a condition precedent to our obligation to indemnify the insured under this policy. (d) provide full assistance and cooperation to us in investigating the loss; and (e) take all reasonable steps to obtain recovery of the loss and prevent any further loss. We may, if they so choose, proceed to conduct the defence of any claim made against an insured, and shall in any event retain the right to actively participate in the defence. The insured shall not admit liability for or settle any claim under this policy or incur any costs or expenses without our prior written consent. Such consent shall not be unreasonably withheld. 2. Subrogation (a) The insured will do and permit all things and execute all documents reasonably required by us to enable us to pursue any recovery rights in respect of the loss. (b) To the extent allowed by law, the insured will retain all amounts payable to and property of any employee implicated in the loss, which may be in or come to the insured s possession or under the insured s control and will apply the amounts or property towards making good the loss. (c) All recoveries whether made by the insured or us will be applied to reimbursement in the following priorities: (i) all costs incurred in effecting the recoveries; (ii) to the insured to the extent that the loss exceeds the limit of liability; (iii) to us to the extent that it has indemnified the insured under this policy; (iv) to the insured to the extent of any excess. 1. Reporting On discovering a loss or circumstances likely to give rise to a loss the insured must: (a) give immediate notice to us; (b) within 120 days provide to us a written statement containing details of the cause, description and amount of the loss and all other relevant information; (c) complete any claim form or sworn proof of loss that we may require; Page of 12
Standard Conditions 1. Cancellation (a) You may cancel this policy at any time by giving notice in writing to us; (b) We may cancel this policy by notifying the insured in writing, for any breach of the terms or conditions, or for any other reason available at law. Notice of cancellation has the effect of cancelling this policy at 4.00pm on the 30th business day, after the day on which notice was sent to the insured; (c) Upon cancellation by the insured a refund of premium will be allowed pro rata of 70% of the premium for the unexpired period of insurance; (d) Upon cancellation by us a refund of premium will be allowed pro rata for the unexpired period of insurance. 2. Misrepresentation, Misdescription, Non-disclosure This policy is voidable in the event of fraudulent misrepresentation, misdescription or non-disclosure. We may deny a claim or reduce a claim amount if the insured has failed to comply with the duties of utmost good faith or disclosure or if the insured has made a false statement to us before the contract was entered into. 6. Proper law and jurisdiction (a) The construction, interpretation and meaning of the provisions of this policy shall be determined in accordance with New Zealand law. (b) In the event of any dispute arising under this policy, including but not limited to its construction and/or validity and/or performance and/or interpretation, the insured will submit to the exclusive jurisdiction of any competent Court in New Zealand. 7. Payments in respect to Goods and Services Tax All sums insured in this policy (except for the excess) exclude GST where that GST is recoverable by us under the Goods and Services Tax Act 1985. We add GST, where applicable, to claim payments. However, this does not apply to the excess which is GST inclusive. 8. Waiver of privilege If we instruct any lawyer to investigate or defend any claim against any insured, you authorise the lawyer to provide us any documents, information or advice in respect of the claim, including in relation to indemnity, and you waive any privilege to the extent necessary to give full effect to our entitlement in this respect. 3. Change of risk Every change materially affecting the facts or circumstances, degree or amount of risk existing at the commencement of this insurance or at any subsequent renewal date, shall be notified in writing to us as soon as such change comes to the notice of the insured or any officer or representative of the insured. On receipt of such notice we may vary the terms of this policy and/or charge such additional premium as we may determine appropriate in the circumstances. 4. Singular and plural Except where the context otherwise requires, a reference to the singular includes the plural and vice versa. 5. Notice Every notice or communication to us shall be in writing and sent to the office where this policy was issued. Page of 12
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ZU08281 - PCUS-000155-2007 Official partner of the Hyundai A-League match officials. Zurich Australian Insurance Limited (incorporated in Australia) Trading as Zurich New Zealand ABN 13 000 296 640 AFS Licence No: 232507 55-65 Shortland Street Auckland 1010 New Zealand Client Enquiries Telephone: 0508 ZURICH 0508 987 424 www.zurich.co.nz